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Information management

technology Maturity 11-13 Next article →

Information management is the process of capturing, storing, retrieving, and using information in an optimized way. This practice can be applied to an individual's personal files or to an entire large organization. In a business setting, information management follows a specific cycle of activities. First, an organization acquires information from various sources. Next, it acts as a custodian to protect and distribute that information to those who need it. Finally, the organization must dispose of the data by either archiving it for long-term storage or deleting it entirely.

IMBOK Framework
IMBOK Framework

This organizational cycle involves many different stakeholders with specific responsibilities. Some people are responsible for ensuring the quality, accessibility, and utility of the information. Others focus on the safe storage and eventual disposal of the data. There are also people who require this information specifically to make important decisions. These stakeholders may have different rights regarding the information. Depending on company policies, they might have the authority to originate, change, distribute, or delete specific data sets. Information management uses many management concepts, such as planning, organizing, and evaluating, to ensure the right people receive the correct information.

A helpful way to visualize how data evolves is through the DIKAR model. This model was presented by Venkatraman in 1996. It describes a sequence of five distinct stages: Data, Information, Knowledge, Action, and Result.

DIKAR model
DIKAR model

It begins with data, which is maintained within an IT infrastructure. This raw data must be interpreted to become information. Once that information is understood, it emerges as knowledge. This knowledge allows managers to make effective decisions. Those decisions then lead to appropriate actions, which are expected to deliver meaningful results. This model shows that information is not just a product, but an investment that must create value.

The history of this field shows a major shift in how we view technology. In the 1970s, information management was very close to what we now call data management. During this era, people used physical media like punched cards and magnetic tapes. The focus was on the life cycle of these specific formats, including backup and maintenance. However, the 1970s also saw the recognition of huge technological potential. For example, people began to realize a single chip could store an entire book. They also saw how electronic mail could move messages around the world instantly.

DIKAR model
DIKAR model

By the 1980s and 1990s, the rise of information systems changed the field again. Information management moved from a simple operational task to a highly strategic concern for senior management. Progressive companies like BP led this transformation. They changed their professional vocabulary to reflect this new reality. For instance, "systems analysts" became "business analysts," and large IT functions were replaced by "lean teams."

An Information Portfolio
An Information Portfolio

This shift allowed companies to use information more flexibly to gain business benefits. It required leaders to align their technology strategies directly with their overall business goals.

Theoretical research helps explain why managing information is so complex. At Carnegie Mellon University, researchers like March and Simon studied behavioral and organizational theories. They argued that modern organizations are essentially systems for handling information and making decisions. They introduced the concept of "administrative man" to replace the older "economic man" model. They noted that humans have cognitive limits on how much they can process. Because of these limits, people often practice "satisficing." This means they search through alternatives only until they reach an acceptable threshold, rather than searching for a perfect solution.

Finally, information management must account for economic and environmental factors. Collecting and evaluating information requires significant time, effort, and money. The transaction costs associated with these processes can be very high. In some cases, strict organizational rules and bureaucratic procedures can actually prevent the best decisions from being made. This can lead to sub-optimum outcomes for a company. To succeed, modern organizations must understand their entire information environment. This environment includes the physical, informational, and cognitive dimensions that interact with people and systems.

An Information Portfolio
An Information Portfolio
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File:IMBOK Framework.jpg
IMBOK Framework.jpg
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